KUALA LUMPUR, March 15, 2019 – Boustead Holdings Berhad’s subsidiary, Boustead Hotels & Resorts Sdn Bhd, today entered into a sale and purchase agreement with Every Room A Home Sdn Bhd, a subsidiary of Hotel Royal Limited, to dispose its Royale Chulan Bukit Bintang Hotel, which is located along Jalan Bukit Bintang for a total cash consideration of RM197 million.
The sale consideration was reached on a willing-buyer willing-seller basis, factoring in the fair market value of the property based on an independent professional valuation.
The SPA is however, conditional upon, amongst others:
(i) the Purchaser obtaining the approval of the Economic Planning Unit of the Prime Minister’s Department of Malaysia for the acquisition of the Property;
(ii) the Purchaser obtaining the approval of Jawatankuasa Kerja Tanah Wilayah Persekutuan Kuala Lumpur for the acquisition of the Property under Section 433B of the National Land Code, 1965; and
(iii) the Purchaser completing all conditions and listing requirements imposed by the Singapore Exchange Securities Trading Limited (“SGX”).
A spokesperson from BHB commented, “The disposal of this property forms part of the Boustead Group’s overall plan to return to profitability by way of divesting non-strategic assets. Weighing the prospects of maintaining the hotel, given low occupancy rates and the age of the property coupled with the increasingly competitive industry, the sale offers greater value to the Group.”
“The prime location of Royale Chulan Bukit Bintang Hotel in the golden triangle of Kuala Lumpur enables us to dispose of the hotel at a premium over the net book value. The Group is expected to realise a total estimated gain of RM92 million upon completion of the proposed disposal, translating into approximately 4.5 sen per share. This is indeed an attractive opportunity to enhance value for shareholders which resonates well with our business strategy.”
The proposed sale is expected to be completed by mid-2019.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Plantations Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Issued on behalf of: Boustead Holdings Berhad
By: acorn communications sdn bhd
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